5 Best Non-Tech Chinese Stocks to Buy Now

In this article, we discuss the 5 best non-tech Chinese stocks to buy now. If you want to read about some more non-tech Chinese stocks, go directly to 10 Best Non-Tech Chinese Stocks to Buy Now. 

5. ZTO Express (Cayman) Inc. (NYSE:ZTO)

Number of Hedge Fund Holders: 28     

ZTO Express (Cayman) Inc. (NYSE:ZTO) provides delivery and logistics services in China. The company posted earnings for the fourth quarter of 2021 on March 15, reporting earnings per share of $0.34, beating estimates by $0.01. The revenue over the period was $1.46 billion, missing targets by $50 million. The company also declared a special dividend of $0.25 per ADS.  The adjusted profit for the firm grew by around 35% during the fourth quarter, a welcome break for the stock that had seen this figure in the red in five of the last seven quarters.  

On March 8, Citi analyst Lu Xu maintained a Buy rating on ZTO Express (Cayman) Inc. (NYSE:ZTO) stock with a price target of $39,60, citing “defensiveness with better-than-peer cost advantage and attractive valuation” as the main catalysts for the shares. 

At the end of the fourth quarter of 2021, 28 hedge funds in the database of Insider Monkey held stakes worth $1.09 billion in ZTO Express (Cayman) Inc. (NYSE:ZTO), up from 20 the preceding quarter worth $1.01 billion.

4. XPeng Inc. (NYSE:XPEV)

Number of Hedge Fund Holders: 29     

XPeng Inc. (NYSE:XPEV) makes and sells smart electric vehicles. On April 1, the shares jumped 7.5% after the company posted stellar EV delivery numbers for March. The firm revealed that it had delivered 15,414 EVs in March, up 202% year-on-year and 148% month-on-month. The total number of vehicles delivered in the first quarter of 2022 stood at 34,561, up 159% year-on-year. The company has so far delivered more than 172,000 across the country. 

On April 1, HSBC analyst Yuqian Ding initiated coverage of XPeng Inc. (NYSE:XPEV) stock with a Buy rating and a price target of $37, noting that the firm had built an autonomous driving setup in-house, a feat no other domestic competitor of the firm has matched so far. The analyst also hailed the system as one of the best available in China. 

At the end of the fourth quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in XPeng Inc. (NYSE:XPEV), up from 25 the preceding quarter worth $657 million.

3. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 30   

NIO Inc. (NYSE:NIO) develops and sells electric vehicles. Like other EV firms in China, Nio has also posted strong EV delivery numbers for March. The stock jumped 6% at the start of the month after the company reported a 37% year-on-year growth in March delivery numbers. In the first quarter of 2022, the firm delivered a record 25,768 EVs, up close to 29% compared to deliveries for the first quarter of 2021. The firm has so far delivered 192,838 vehicles across the world. It plans to launch deliveries for the new ET7 model this year too. 

On March 25, Citi analyst Jeff Chung kept a Buy rating on NIO Inc. (NYSE:NIO) stock with a price target of $87, noting that the firm posted stronger than expected vehicle margins for the first quarter of the year. 

At the end of the fourth quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $813 million in NIO Inc. (NYSE:NIO), the same as in the preceding quarter worth $1.1 billion.

2. New Oriental Education & Technology Group Inc. (NYSE:EDU)

Number of Hedge Fund Holders: 31    

New Oriental Education & Technology Group Inc. (NYSE:EDU) provides private educational services across China. The stock has gained in the past few weeks after reports indicated that the founder of the firm, Yu Minhong, had purchased 3.2 million shares of Koolearn, an education firm owned by Oriental. The CEO has also pledged to embark on a plan to diversify and the firm plans to sell agricultural products online in the first part of this plan. 

On March 9, investment advisory Daiwa upgraded New Oriental Education & Technology Group Inc. (NYSE:EDU) stock to Buy from Neutral. Analyst Candis Chan issued the ratings update. Other advisors like US Tiger are also bullish on the stock. 

At the end of the fourth quarter of 2021, 31 hedge funds in the database of Insider Monkey held stakes worth $454 million in New Oriental Education & Technology Group Inc. (NYSE:EDU), compared to 32 in the preceding quarter worth $389 million. 

In its Q3 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and New Oriental Education & Technology Group Inc. (NYSE:EDU) was one of them. Here is what the fund said:

“The quarter’s leading detractors were Chinese companies that were impacted by the CCP’s regulatory crackdown and liquidity concerns at property developer Evergrande. New Oriental Education & Technology Group Inc. (NYSE:EDU)—the largest provider of private educational services in China—moved sharply lower in July after policymakers implemented new rules which effectively turned Chinese tutoring companies into non-profits. Looking at New Oriental Education & Technology Group Inc. (NYSE:EDU), we closed our position as soon as government policy became clear and used the proceeds to allocate to existing holdings.”

1. KE Holdings Inc. (NYSE:BEKE)

Number of Hedge Fund Holders: 34    

KE Holdings Inc. (NYSE:BEKE) provides real estate services. Some of the services that the company provides, through online and offline offices, include new home sales, home rentals, home renovation, real estate financial solutions, and others. The stock has been given a major boost after the Chinese government promised it would take measures for financial stability after a lengthy crackdown against dual-listed firms that had led to large losses for Chinese firms listed in the United States. 

On March 16, Morgan Stanley analyst Steven Tsai upgraded KE Holdings Inc. (NYSE:BEKE) stock to Overweight from Equal Weight with a price target of $16, noting that policy relaxation looked to set to boost the housing market and evidence of this was already evident in sales. 

Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Lone Pine Capital is a leading shareholder in KE Holdings Inc. (NYSE:BEKE) with 30 million shares worth more than $622 million. 

In its Q3 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and KE Holdings Inc. (NYSE:BEKE) was one of them. Here is what the fund said:

“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE Holdings Inc. (NYSE:BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”

You can also take a peek at 10 Cheap Dividend Kings with Over 2% Yield and 12 Best Semiconductor Stocks To Invest In Right Now.

 

 

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